Central bank vested with broader powers to tackle serious violations
The Saigon Times Daily
The headquarters of the State Bank of Vietnam in Hanoi - PHOTO: SBV.GOV.VN
HCMC - The Government has delegated greater powers to the State Bank of Vietnam (SBV) to deal with credit institutions which seriously infringe monetary and banking regulations.
The authorization is provided in the Government’s Decree 16/2017/ND-CP governing the functions, tasks, rights and organizational structure of the SBV. The decree defines the SBV as a ministerial-level agency and the nation’s central bank tasked with managing monetary issues, banking and foreign exchange activities, printing money, acting as the bank of credit institutions, and supplying money for the Government.
In addition to the tasks, rights and functions of ministerial or ministerial-level agencies detailed in the law on the SBV and the Government’s Decree 123, the central bank has to do 36 other specific tasks assigned by the Government and the Prime Minister and regulated in relevant regulations.
The SBV is responsible for preparing draft laws, draft resolutions of the National Assembly, draft ordinances and resolutions of the Standing Committee of the National Assembly, and draft Government decrees. It must carry out relevant projects and plans as assigned by the Government and the Prime Minister; annual and long-term development strategies and zoning plans; national programs and action plans for important projects and programs in the areas under its management.
The SBV is in charge of proposing annual inflation targets for the Government to consider and approve and use necessary tools for implementation of monetary policy in Vietnam. It should manage data in economic, financial, monetary and banking areas in Vietnam and abroad to support the drafting and execution of monetary policy in the country; and publicize monetary and banking information in line with law.
The SBV has the right to issue, revise and withdraw licenses of credit institutions, and those of foreign bank branches and representative offices in Vietnam. It is authorized to take special measures against institutions which seriously breach monetary and banking rules and struggle with financial problems that threaten the safety of the banking system.
The new decree allows the SBV to set up a communications department in addition to its departments for monetary policy, foreign exchange management, payment, credit for economic sectors, forecasting and statistics, international cooperation, monetary and financial stability, internal auditing, legal matters, finance and accounting, organization, reward and emulation, information technology, governance, transaction, inspection and supervision, among others.
The entities under the SBV include branches in cities and provinces, the Banking Strategy Institute, the National Credit Information Center of Vietnam, the Banking Academy, and banking publications.